KPC consults authorities on measures against protesting workers
Wednesday, September 10 2003 - 02:11 AM WIB
?We are consulting (with) related government agencies about the labor strike,? KPC president director Noke Kiroyan was quoted as saying Tuesday.
More than 2,000 workers of KPC went on strike on Aug 29, halting the company's coal production and transportation activities. The labor strike has entered its 13th day Wednesday (today).
The workers have not heeded warning from the management that they would face serious consequences if they refuse to get back to work.
On Tuesday, negotiators from the protesting workers did not come to a meeting at the East Kutai regency office of manpower in East Kalimantan. They had been invited to negotiate their demand with KPC officials in the presence of government officials.
The workers insisted on negotiating with KPC shareholders, Rio Tinto and BP Plc, and not with company officials.
The workers insist that Rio Tinto and BP pay US$40 million in bonus to workers in compensation for their plan to sell their entire shares in KPC to PT Bumi Resources.
Nanang Asnan, coordinator of the workers? negotiators, said Tuesday their strike would continue until KPC shareholders gave them an advanced pay of $5 million as promised.
Minister of Manpower Jacob Nuwawea said, however, the workers? demand was not in accordance with existing laws.
KPC, one of Indonesian?s top coal producers, operates a huge coalmine in Sangatta, East Kutai. It exports most of its coal output.
Meanwhile, the mine and coal entrepreneurship director at the Ministry of Energy and Mineral Resources, Mahyudin Lubis, said they were awaiting reports from KPC about the latest situation at the company's mining site.
KPC on Tuesday announced a force majeure on overdue shipments to some of its customers. Mahyudin said the company?s move was acceptable because it would prevent it from suffering bigger losses. (*)